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DEPARTMENT OF ENERGY

DIVISION 210

CONSERVATION ENERGY INCENTIVE PROGRAM

330-210-0000

Applicability of Rules in OAR 330,
Division 210

(1) These rules implement the incentive
program for energy conservation projects established by House Bill 3672 (2011) and
amended by House Bill 4079 (2012). The rules also provide procedures for submission,
agency review and selection of energy conservation projects for preliminary and
final certification of tax credits.

(2) These rules apply to
all applications for tax credits for energy conservation projects, as governed by
ORS 469B.270 to 469B.306.

(1) “Applicant”
means a person who has applied for or who has received a preliminary certificate
for a conservation energy incentive program tax credit or who has submitted an informational
filing for a small premium project.

(2) “Certified cost”
means the cost certified in the final certification.

(3) “Cost” has the
meaning given in ORS 469B.270, the capital costs and expenses necessarily incurred
in the acquisition, erection, construction and installation of an energy conservation
project.

(4) “Department”
means the Oregon Department of Energy.

(5) “Director” means
the director of the department.

(6) “Energy conservation
project” has the meaning given in ORS 469B.270, any capital investment for
which the first year energy savings yields a simple payback period of greater than
three years. “Energy conservation project” does not include:

(a) Recycling equipment, products
and projects;

(b) Transportation projects;

(c) Energy recovery as that
term is defined in ORS 459.005; or

(d) Alternative fuel vehicles.

(7) “Incremental cost”
means the difference between the cost of doing the energy conservation project with
the energy efficient features and the cost to construct a similar project at current
Oregon energy code or documented industry standard.

(8) “Installation or construction”
means the process of physical assembly of an energy conservation project or supporting
infrastructure at its operating location.

(9) “New construction”
means a building project that is newly constructed.

(10) “Opportunity period”
means the timeframe specified in an Opportunity Announcement for the department
to accept applications for energy conservation projects.

(11) “Qualified third
party” means a third party, selected by the director, that provides recommendations
to the director regarding a research and development energy conservation project.

(12) “Qualifying project
cost” means the amount of the energy conservation project’s cost that
is used in calculating the amount of tax credit certified.

(13) “Research and development
project” means an energy conservation project that a qualified third party
recommends to the department as one that demonstrates innovation.

(14) “Service life”
means equipment service life as established in the 2011 edition of the American
Society of Heating, Refrigeration and Air Conditioning Engineers’ (ASHRAE)
Heating, Ventilating and Air Conditioning (HVAC) Applications Handbook as of the
date the department receives a complete preliminary application or, for equipment
not rated by ASHRAE, as determined by the department.

(15) “Small premium project”
means an energy conservation project with qualifying project costs of less than
$20,000 for which the department has identified prequalified measures.

(16) “Total building retrofit”
means a comprehensive building retrofit that includes energy efficiency projects
for each energy-using system including the building envelope. A building retrofit
that does not include each energy-using system may also apply as a total building
retrofit; if the project meets the eligibility standards described in OAR 330-210-0070.

(17) “Total project cost”
means all costs directly associated with an energy conservation project, including
costs that are not qualifying project costs.

(1) The department will announce
the availability of tax credits for energy conservation projects by issuing an Opportunity
Announcement.

(2) The department will continually
monitor the allocation of tax credits to ensure that the total amount of potential
tax credits does not exceed the tax credit caps specified in ORS 469B.303.

(3) If the cumulative total
of all tax credits awarded under the Opportunity Announcement is less than the total
amount of tax credits available, the department may reallocate the balance to future
Opportunity Announcements, including between categories.

(4) The Opportunity Announcement
will include the following information:

(a) Objectives for the opportunity
period;

(b) The amount of tax credits
available;

(c) Application requirements, as defined
in OAR 330-210-0050;

(d) Dates of the application opportunity
period;

(e) Instructions and directions
to the required application forms and materials;

(f) Minimum technical standards
based on relevant industry standards used to conserve or reduce energy use;

(g) The criteria to be applied
in prioritizing applications for tax credits, as described in OAR 330-210-0060;
and

(1) Any person may apply for
preliminary certification by submitting a complete preliminary certification application.
The application must meet requirements provided by applicable statutes, these rules
and the current Opportunity Announcement. A preliminary certification application
is not required for applicants submitting an informational filing under the small
premium project process.

(a) The application must be
in the form specified in the Opportunity Announcement and these rules.

(b) An applicant must submit
a complete application during the opportunity period. For the purposes of this rule,
the department considers an application “submitted” when the department
receives the application accompanied by the fee specified in these rules. The department
will not process applications received outside of an opportunity period.

(2) The application must be
accompanied by the application fee specified in these rules. The department will
not process applications received without fee payment.

(3) The department will not
accept amendments to applications during the opportunity period. An applicant may
withdraw an application and submit a replacement application during the opportunity
period. The department will not process fees for applications withdrawn before the
end of the opportunity period.

(4) The application must include
the following information, unless the department specifies otherwise in the Opportunity
Announcement.

(a) The name of the applicant.

(A) If the applicant is a partnership,
joint venture or association, the application must include the names of each person
participating in the partnership, joint venture or association. The department may
use this information to ensure compliance with ORS 469B.288(3).

(B) If the applicant is a corporation
or limited liability company, the application must include the name of the corporation,
or LLC and its parent corporations, members, and any close affiliates or subsidiaries.
The department may use this information to ensure compliance with ORS 469B.288(3).

(C) If the applicant is a public
or governmental entity, the application must include written authorization from
the entity’s governing body allowing submission of the application.

(b) The name, address, email
address and telephone number of the responsible party for the applicant.

(c) The applicant’s federal
tax identification number or social security number, which may be shared with the
Oregon Department of Revenue to facilitate the administration of state tax law.

(d) A statement verifying that
the applicant will be the owner, contract purchaser or lessee of the energy conservation
project at the time of installation or construction of the project.

(e) A description of the personnel
and teams that will be working on the energy conservation project’s development,
implementation and operation.

(f) If the applicant has received
final certification of tax credits or payment of grants issued by the department
within the last 5 years, the application must contain a statement about the operational
status of the projects awarded such grants or tax credits.

(g) The location of the energy
conservation project.

(h) A statement explaining how
and in what amount the energy conservation project will reduce the consumption of
purchased energy or use energy more efficiently.

(A) The statement must identify
the annual energy use separated by fuel type of the energy conservation project
at the following conditions: proposed conditions, baseline conditions, along with
existing conditions, if the project involves a retrofit.

(i) Annual energy use at proposed
conditions must be calculated using energy engineering methods as outlined in the
Opportunity Announcement.

(ii) Baseline conditions and
assumptions must be described in detail.

(iii) For retrofit projects,
existing annual energy usage must be supported by a minimum of 24 consecutive monthly
utility bills or a calculation approved by the department.

(B) If applicable, provide information
about the expected level of sustainable building practices project performance.

(i) A detailed description of
the energy conservation project, including information that demonstrates how the
project will be technically feasible and how the project will operate for at least
five years as represented in the application. This may require documentation in
addition to the application form.

(j) The expected operational
life of the energy conservation project.

(k) A statement of compliance
with applicable state and local regulations and that the applicant will obtain required
licenses and permits.

(L) The number and type of new
jobs that will be created by the energy conservation project and the number of existing
jobs that will be sustained throughout the construction, installation and operation
of the project. Job estimates should be submitted in hours. These hours must directly
relate to the energy conservation project.

(m) The anticipated total project
cost, including the energy conservation project’s incremental cost, if applicable.

(n) The amount of anticipated
or received incentives directly related to the energy conservation project.

(o) A project schedule.

(p) All research and development
projects must include a recommendation from a qualified third party that the project
demonstrates innovation.

(q) A description of the applicant’s
installation or construction financing plan.

(r) The dollar amount of tax
credit requested by the applicant.

(s) If the applicant has already
started installation or construction of the energy conservation project, a written
description of the special circumstances that rendered the filing of an application
prior to the start of construction or installation unreasonable.

The department adopts the following
schedule of fees as provided by ORS 469B.294 for applicants. All fee payments are
non-refundable, despite the results of the department’s review.

(1) Applicants, except those
applying through the small premium project process, must submit an application fee
of $500 with their preliminary certification application.

(2) Applicants applying through
the small premium project process must submit a fee of $100 with their informational
filing.

(3) Applicants selected for
technical review will be required to pay an additional technical review fee prior
to that review. The fee amount is equal to the qualifying project cost multiplied
by 0.55 percent. Small premium projects are not subject to the technical review
fee.

(4) Applicants requesting
amendments to preliminary certifications must submit a fee of $300 with their amendment
request.

(5) Applicants for final
certification must submit with their application a final review fee. This fee amount
is equal to the qualifying project cost multiplied by 0.55 percent. All applicants
seeking final certification for a project, including small premium projects, are
required to apply for final review and pay the final review fee.

(6) Applicants that transfer
their tax credit to a pass-through partner must pay a pass-through fee. The fee
is due after a pass-through partner has been identified and before the department
will issue a tax credit certificate.

(a) If the department assists
the applicant in obtaining a pass-through partner or partners, the fee for that
assistance is 1.25 percent of the tax credit amount plus $100 per tax credit certificate
issued.

(b) If the department does
not assist the applicant in obtaining a pass-through partner, the fee is $200 per
tax credit certificate issued.

(7) Applicants issued a tax
credit certificate that choose to have their tax credit re-issued to a transferee
must pay a transfer fee of $200 plus $100 per tax credit certificate issued.

(8) If an applicant fails
to pay fees timely as required by this rule, the department may reject the pending
application and discontinue the review.

(1) Projects with qualifying
project costs of less than $20,000 may utilize the small premium project informational
filing process, instead of the preliminary certification and competitive review
process, if the project complies with the minimum department-established standards.
Energy conservation projects with qualifying project costs of less than $20,000
may participate in the preliminary certification and competitive review process.

(2) The department will issue
an Opportunity Announcement for small premium projects. The opportunity period will
remain open from the date the department issues the Opportunity Announcement until
stated in the Opportunity Announcement and could end sooner if funds are exhausted.
The Opportunity Announcement will list the types of technologies with the minimum
standards as defined by the department. The types of technologies may include:

(a) Adjustable Flow Irrigation
Pumping,

(b) Agricultural Irrigation
System Improvement,

(c) Boiler-Vent Dampers,

(d) Building Envelope Thermal
Improvement,

(e) Compressed Air Systems Components,

(f) Direct-fired Radiant Heating
in High Volume Spaces,

(g) Ductless Heat Pumps with
Variable Refrigerant Flow,

(h) Energy Improvements to Commercial
Greenhouses,

(i) High Performance Homebuilding,

(j) Heat Pump Service Hot Water
Heating,

(k) Industrial Piping Insulation,

(L) LED Outdoor Lighting,

(m) Premium Efficiency Electric
Air Conditioning Equipment,

(n) Solar Thermal Water Heating,
and

(o) Technology offerings approved
by the department under section (9).

(3) Applicants must submit a
complete informational filing prior to the project’s installation or construction
on the form specified in the Opportunity Announcement and include:

(a) The required filing fee;
and

(b) Information demonstrating
that the project meets the definition of an energy conservation project and is located
in Oregon.

(4) Small premium projects are
eligible for predetermined tax credit amounts based on savings and cost; but the
tax credits cannot exceed 35 percent of certified costs. The department will post
the predetermined tax credit amounts in the Opportunity Announcement.

(5) If the tax credits available
for small premium projects have been fully allocated before the department receives
a complete informational filing from an applicant, the applicant will not be eligible
for any tax credits for the project under the small premium review process but may
participate in the preliminary certification competitive review process.

(6) If the department finds
that the informational filing is complete, the department will confirm in writing
the receipt of the informational filing. The department will not process incomplete
filings, and will provide written notification to the applicant of the fact that
the filing is incomplete.

(7) Receipt of an informational
filing does not guarantee eligibility and issuance of a final certification for
the tax credit. Applicants must also comply with all applicable statutory requirements
and requirements listed these rules in order to receive tax credits. The department
will determine the eligibility of the small premium project prior to issuing a final
certificate.

(8) Small premium project informational
filings will expire 12 months after the date the department receives the informational
filing, unless the department receives a complete final certification application
before the end of the 12 month period.

(9) The department may consider
proposals for new technology offerings for small premium projects within this section.
The proposal application will include a set of guidelines that define the information
that must be submitted for department review. The department will evaluate proposals
and determine whether to include the technology and the rate at which to incentivize.
The department may provide an opportunity for public comment on approved proposals
prior to adding them to the Opportunity Announcement. All proposals must include:

(f) Evidence that the technology
is currently listed as an emerging energy conservation technology by the Northwest
Energy Efficiency Alliance, Bonneville Power Administration, U.S. Department of
Energy or other agencies recognized and approved of by the department, and

(1) Following the opportunity
period, the department will review all preliminary certification applications, other
than those participating in the small premium project process, to determine whether:

(a) All sections of the application
are complete as outlined in the Opportunity Announcement.

(b) The applicant has submitted
the required fee.

(c) The project meets the definition
of an energy conservation project.

(d) The applicant intends to
begin construction within 12 months of award.

(e) The applicant is applying
prior to the installation or construction of the project.

(A) If the applicant applies
after installation or construction of the project has started, the department will
deny the application unless a written explanation of the special circumstances is
received and approved by the director.

(B) Failing to submit a timely application
or the fact that the project was not selected for a grant or tax credit under this
or prior department programs does not constitute special circumstances.

(f) The energy conservation project is
located in Oregon.

(2) If the department finds
that the application is complete, the application will move into the competitive
review process and the department will notify the applicant in writing.

(3) The department will deny
all incomplete applications and notify applicants in writing of the reason for denial
of the application.

(4) The department considers
the completeness review a test; the decision to deny an incomplete application is
not subject to review under ORS chapter 183.

(1) The department will conduct
a competitive review of all applications that pass the completeness review, other
than those participating in the small premium project process.

(2) During the competitive review,
the department’s internal review team will prioritize applications for preliminary
certification according to the criteria described in the rules. Depending on the
Opportunity Announcement objectives, the department may give greater or lesser weight
to each of the criteria listed in rules.

(3) For the purposes of the
competitive review, the department will compare projects of similar technology types
against each other. The technological sector categories for energy conservation
projects are:

(a) Building envelopes, weatherization.

(b) Renewably sourced thermal
energy projects that use a renewable energy source, such as solar, biomass or geothermal,
directly without converting it to electricity. Within this category, energy savings
will be determined through energy displacement.

(c) Commercial building systems.

(d) Sustainable buildings. This
category is for projects that are eligible for tax credits under the standards for
new construction and total building retrofit.

(e) Commercial, agricultural
and industrial processes.

(f) Cool Schools. This category
is for projects in which the applicant is a public school, educational services
district or other entity considered as an eligible Cool Schools applicant by the
department.

(4) Within the technological
sector categories, the department may divide the applications into tiers based on
project size. The Opportunity Announcement will have details about any tiers prior
to implementation.

(5) In the Opportunity Announcement,
the department will list the evaluation criteria for the competitive review. The
competitive review will give preference to projects that have the highest energy
savings over the five-year tax credit period per tax credit dollar requested. Additional
criteria the department may consider includes:

(h) The geographical area and
local economic conditions of the site location;

(i) Agreement to a voluntary
reduction of requested tax incentive; and

(j) Agreement to a voluntary
measurement and verification plan, which includes an agreement to share the results
with the department.

(6) The department’s internal
review team will recommend to the director which projects to advance to technical
review based on the competitive review results. The director will review and then
amend or approve the recommendations.

(7) The department will notify
applicants of the competitive review’s outcome. The department may place projects
not advanced to the technical review phase on a supplemental list, pending the technical
reviews of the selected projects. The department will retain the supplemental list
until preliminary certifications have been issued for the selected energy conservation
projects. The supplemental list will include only those projects submitted in response
to the particular Opportunity Announcement.

(8) If an applicant has not
started installation or construction of the energy conservation project, an applicant
may apply again for the same project in a future opportunity period by submitting
a new application and fee. The department will not apply fees or applications submitted
in response to a previous Opportunity Announcement to future Opportunity Announcements.

(1) Once the applicant has paid the
technical review fee, the department will conduct a technical review of project
applications advanced from the competitive review process. If the applicant does
not submit the required technical review fee to the department within 21 calendar
days of mailing of the notification for technical review, the department may deny
the application.

(2) The department will review
the information provided in the application against industry standards to determine
whether the project is technically feasible and should operate in accordance with
the representations made by the applicant.

(3) To be eligible the energy
conservation project must meet the following requirements:

(a) The project must meet
the requirements of the statutes, these rules and the Opportunity Announcement.

(b) The applicant must be
the owner, contract purchaser or project lessee at the time of the project’s
installation or construction.

(c) The applicant must be
a trade, business or rental property owner with a business site in Oregon or be
an Oregon non-profit organization, tribe or public entity that partners with an
Oregon business or resident. The applicant may not restrict membership, sales or
service on the basis of race, color, creed, religion, national origin, sexual preference
or gender.

(d) A project located at
a residential property must be rental property. A rental property must meet laws
related to rental accommodation and contain a dwelling unit or rooming unit with
permanent living facilities. Living facilities include facilities for sleeping,
eating, cooking and sanitation, for one or more persons, other than the property
owner, which is subject to a rental agreement that provides for meaningful compensation
to the owner.

(e) Within the project schedule
and detailed project description provided in the preliminary certification application,
the applicant must demonstrate the ability to begin construction within 12 months
from the date the department issues the project’s preliminary certification.

(f) The energy conservation
project must meet the simple payback requirements. The department bases simple payback
on total project cost divided by the qualified annual energy savings. Total project
cost is calculated for this purpose before any tax credits or grants are applied.

(g) An applicant for a new
construction or total building retrofit project must indicate that the project will
meet the current standard, at the time of application submission, for one of the
following:

(A) Leadership in Energy
and Environmental Design (LEED);

(i) The project must be seeking
LEED platinum certification with a minimum of eight Optimize Energy Performance
points; or

(ii) Using the appropriate
peer reviewed energy modeling program, the project must show a minimum 26 percent
improvement over ASHRAE 90.1-2007, without addenda.

(B) Green Globes

(i) The project must be seeking
Green Globes, Four Globes certification; or

(ii) Using the appropriate
peer reviewed energy modeling, the project must be a building falling within the
95th percentile, or better, of the equivalent building stock listed in the Commercial
Buildings Energy Consumption Survey (CBECS). Where an equivalent building type is
not listed, the modeling must be equivalent to a minimum 26 percent improvement
over ASHRAE 90.1-2007, without addenda.

(C) Reach Code

(i) Project plans must be
submitted to a local building department and approved for building under the Oregon
Reach Code.

(ii) For proposed buildings
either required to model or opting for the modeling path, the energy model must
show at least an 18 percent improvement over the Oregon Energy Efficiency Specialty
Code.

(D) Earth Advantage

(i) The project must be seeking
Earth Advantage Gold Certification; or

(ii) Using the appropriate
peer reviewed energy modeling program, the project must show a minimum 18 percent
improvement over the Oregon Energy Efficiency Specialty Code.

(h) An application for replacing
inefficient equipment must demonstrate that the equipment being replaced is within
its useful service life and in a good state of repair.

(i) A qualified third party
must evaluate and recommend research and development projects.

(j) The qualified annual
energy savings of the energy conservation project must pay back the qualifying project
cost within the service life of the project. This requirement does not apply to
research and development projects.

(k) The department may require
that the baseline energy conservation project be specifically identified and permanently
decommissioned.

(4) The department will review
energy conservation project costs for eligibility to determine qualifying project
costs. Cost may include the capital costs and expenses necessarily incurred in the
acquisition, erection, construction and installation of an energy conservation project.
The application must document total project cost by providing a list of itemized
costs.

(A) The cost of components
of the proposed energy conservation project;

(B) Fees to design or engineer
the energy conservation project;

(C) The cost of title searches,
escrow fees, permit and license fees, excluding fees required by this rule, and
shipping;

(D) Costs for all materials
and supplies needed for the erection, construction, installation or acquisition
of the proposed energy conservation project;

(E) Cost of work performed
by employees or independent contractors of the applicant based on the following
conditions:

(i) Employees or contractors
must be certified, accredited, licensed or otherwise qualified to do the work;

(ii) The work must be associated
with the erection, construction, installation or acquisition of the proposed energy
conservation project;

(iii) Project management
and other similar costs may only account for up to 15 percent of the qualifying
project costs; and

(iv) Costs for employees’
or contractors’ work on the energy conservation project must be detailed and
documented as to specific tasks, hours worked and compensation costs. This cost
may include employee benefits and taxes.

(F) Costs for legal counsel
that is directly related to the development of an energy conservation project (excluding
litigation, intellectual property, etc.);

(G) Costs of training associated
with the energy conservation project that is approved by the department; and

(H) Other costs the department
determines should be included.

(b) Qualifying project costs
do not include:

(A) Interest and warranty
charges;

(B) Litigation or other operational-related
legal fees and court costs;

(C) Intellectual property
search, application and filing payments;

(D) Donated, in-kind or volunteer
labor and materials;

(E) Administrative costs
to apply for grants, loans, tax credits or other similar funding for an energy conservation
project including, but not limited to the tax credit review charge, costs associated
with the creation and development of the certified public accountant attestation
letter and costs associated with securing a pass-through partner for the project;

(G) Expenses that are directly
or indirectly offset with federal fee waivers;

(H) Expenses that are deemed
not to have a benefit to the energy conservation project, including but not limited
to, fines, penalties, entertainment, food, alcohol, gifts and lobbying; and

(I) Other costs the department
determines should be excluded.

(c) The department may do
inspections to verify qualified project costs.

(d) The department will calculate
incremental cost as the difference between the cost of the energy conservation project
with the energy efficient features and the cost to construct a similar project at
code or industry standard. Qualifying project cost will be limited to incremental
cost for new facilities or for the replacement of facilities beyond their service
life, including when a code, standard or other base system is required.

(A) In new construction and
total building retrofit projects, qualifying project cost is the difference between
building to code and building to exceed the applicable required standards.

(B) In other energy conservation
projects, qualifying project cost is the difference between prevailing practices
for that business or industry and a more energy efficient method.

(e) Qualifying project costs
may be reduced by the following:

(A) The department will prorate,
based on the 2011 edition of ASHRAE standards or as otherwise determined in these
rules, the qualifying project cost based on the remaining service life of the equipment.
If the baseline project has exceeded its service life, the department will consider
only the incremental cost of the project as eligible cost for calculating the amount
of a tax credit.

(i) Energy conservation projects
must have a simple payback of greater than three years and less than the service
life of the energy conservation project.

(ii) An applicant may submit,
for department approval, a published or recognized standard to determine service
life expectancy. If a published or recognized standard is unavailable, the department
may use a 15-year limit on service life expectancy.

(B) Costs for a portion of
or an entire energy conservation project that has previously received a tax credit
certification or grant issued by the department.

(C) Costs to replace the
same baseline energy conservation project more than once.

(f) New construction, total
building retrofit and small premium projects must provide cost information, but
the department will calculate the tax credit amount by using a predetermined amount
described in the applicable Opportunity Announcement.

(g) An applicant may incur
qualifying project costs prior to the submission of an application, but may not
begin installation or construction.

(5) The department will determine
whether the project is a single energy conservation project, or is part of a larger
project in combination with other applications.

(a) The department considers
a single energy conservation project as one or more projects that are applied for
in response to the same Opportunity Announcement, owned or controlled by the same
person and located at the same building or structure.

(b) For the purposes of this
subsection, “same person” includes affiliated or subsidiary corporations,
other subsidiary business organizations or other affiliated entities owned or controlled
by the same parent corporation but excludes equity-only financing partners.

(c) The department may reduce
the potential tax credit award or deny the application if the department finds that
the proposed project is not a single energy conservation project.

(d) The department will not
divide energy conservation projects applied for in the same application.

(6) If an application does
not include all information needed to complete the technical review, the department
may notify the applicant in writing, requesting additional information. If the department
does not receive the requested information within 30 calendar days of the date of
the notice, the department may deny the application.

(7) The department will notify
the applicant in writing if the department denies the application during the technical
review.

(8) If the technical review
determines that inaccurate information was submitted by the applicant during the
competitive process, the department may deny the application.

(1) The department may issue
a preliminary certificate if it determines that the energy conservation project
is technically feasible and capable of operating in accordance with the representations
made by the applicant.

(2) The department may issue
a tax credit that is less than the amount requested in the energy conservation project
application, pursuant to statute and applicable rules.

(3) The sum of any incentives,
grants, credits, other public funds and the energy conservation tax credit incentive
may not exceed total project costs.

(4) The preliminary certificate
will state the qualifying project cost, the potential amount of allowable tax credit
and any conditions for claiming the credit.

(5) The applicant must report
to the department on the project’s status beginning one year from the issuing
date of the preliminary certificate, unless the department has already received
the project’s application for final certification. The applicant must continue
to submit project progress reports to the department every six months after the
initial report until the department receives the project’s application for
final certificate. Failure to submit reports may result in denial of a final certification.

(6) A preliminary certification
remains valid for a period of three calendar years after the date the department
issues the original preliminary certification or until the sunset of the program,
whichever comes first.

(1) The applicant must notify
the department of any changes to the project described in the application for preliminary
certification. Changes that result in less than a five percent cumulative change
in energy savings may be submitted with the final certification application.

(2) Small premium projects are
not eligible for amendments to informational filings.

(3) An applicant must declare
all changes to the energy conservation project by the time the department receives
the final certification application. Undeclared changes found in the application
for final certification or through later inspection will result in denial of final
tax credit certification.

(4) Applicants must submit amendments
on the form specified in the Opportunity Announcement.

(5) The applicant must demonstrate
that the energy conservation project, with the proposed change, will continue to
meet the requirements of statute, rule and the Opportunity Announcement; be technically
feasible; will operate as represented and will remain in operation for at least
five years. The applicant has the responsibility to provide an amendment request
with complete technical documentation supporting the proposed amendment. The department
may deny amendments submitted without such justification.

(6) An amendment may result
in a reduction in tax credit, but may not increase the tax credit amount certified
in the preliminary certificate.

(7) If an amendment request
does not include all information needed to complete the review, the department may
provide the applicant a written request for additional information. If the applicant
does not provide the requested information to the department within 30 calendar
days, the department may deny the amendment request to amend the preliminary certification.

(8) Requests for amendments
must include payment of the appropriate fee.

(a) The department may accept
non-substantive changes, such as change of responsible party information, without
payment of the fee and at any time up to the time of submission of the application
for final certification.

(b) Changes that result in less
than a five percent cumulative change in energy savings may be submitted without
payment of the fee and with the final certification application.

(9) The department will evaluate
amendments to determine impact on energy savings and other factors, including whether
the change would have affected the outcome of competitive review, which may result
in pro-rating the potential tax credit amount based on energy savings or project
cost or denial of the amendment request.

(10) The department will decide
whether to approve the amendment request.

(a) If approved, the department
will draft an amended preliminary certification, which may contain new or amended
conditions and requirements.

(b) If denied, the department
will notify the applicant in writing. The notice will include the reasons for the
denial of the amendment request. The amendment fee will not be applied to future
amendments.

(1) An energy conservation project
must be completed and operational prior to applying for a final certification. An
applicant must submit requests for amendments to preliminary certifications prior
to or at the time of submission of the final certification application.

(2) The department will not
review applications for final certification received after the expiration of the
preliminary certification or those without the final review fee.

(3) The applicant must submit
the application on the current department-issued form and all sections must be completed.

(4) The department will review
the application, and may conduct an inspection to verify:

(a) That the energy conservation
project is complete and operating.

(b) Compliance with statute,
rules and the preliminary certification or informational filing.

(c) Compliance with state and
local regulations, including required licenses and permits.

(d) The lease or rental agreement
if the project is leased or rented.

(e) That the property taxes
for the project location are current.

(f) That the energy conservation project
will be maintained and operated for at least five years.

(g) The total project costs for purchase
and installation or construction of the energy conservation project were paid in
full.

(A) A certified public accountant
must attest to the total project cost, or if the total project cost is less than
$50,000, the applicant must submit copies of receipts for the project.

(i) The certified public accountant
cannot be the project owner nor permanently employed by the project owner or pass-through
partner.

(B) The application must demonstrate
that no contract or loan agreements directly related to the project are in default.

(C) The application must include
information regarding all incentives, regardless of source, applied for or received
in connection with the project.

(h) Other information the department
considers necessary.

(5) If an application for final
certification does not include all information needed to complete the final certification
review, the department may ask the applicant, in writing, to submit additional information.
If the department does not receive the requested information within 30 calendar
days of the date of the notice, the department may deny the application for final
certification.

(6) The department will notify
the applicant, in writing, if the department denies the application during final
review. An applicant may submit a written request for reconsideration within 60
days after the department issues a decision on a final certification application.

(7) The department will issue
a final certification upon verification that the energy conservation project’s
installation or construction is complete and that the project complies with statute,
rules, the preliminary certification or informational filing, and any other applicable
requirements.

(a) The department may issue
a tax credit certificate up to 35 percent of the qualifying project cost. The department
may certify a lesser tax credit amount than approved in the preliminary certificate
or reserved in the informational filing, but may not certify a greater amount.

(b) The sum of any incentives,
grants, credits, other public funds and the energy conservation tax credit may not
exceed total project costs.

(8) The department will send
a written notification to the applicant of its decision whether to issue a final
certification within 60 days, after the department receives a complete application
for final certification. If a written decision from the department is not issued
within 60 days after receipt of the complete application, then the application is
rejected and no further action will be taken. Any time required to provide additional
information as provided in OAR 330-210-0100(5) is not included in this 60 day period.

The official copy of an Oregon Administrative Rule is
contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
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